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Bitcoin noted as S&P 500 indicator, MATIC formed a Double Top, and Visa to connect crypto to auto bill paying

Crypto markets stabilized after weeks of high volatility as the New Year approaches and industry participants ready for a new era of building. Achievements of 2022 are coming into focus as we see everyone from Visa and TradeFi to Bitcoin developers and DeFi making steady progress despite the crypto winter.

At a glance...




  • Visa releases crypto auto-payment plan
  • Binance to acquire defunct Voyager Digital
  • SBF extradited, let out on bond
  • Brazil President makes crypto bill official
  • 2022 was not so bad after all


Top Market Trends

Movers and Shakers

Top 7-day Gainers:
XDC +9.4%
TON +8.2%
XAUT +2.2%
NEXO +1.4%
PAXG +1.3

Top 7-day Losers:
XCN -42.4%
TWT -29.3%
FIL -27.9%
CHZ -21.5%
LDO -20.0%

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Technical Summary

Bitcoin Pulse
Bitcoin price barely budged over the last 7 days, hovering around the $17k level. NYDIG reported that 40-60 active Bitcoin developers are currently running a “tight ship,” keeping the dominant crypto running smoothly with steady development and clear documentation.

BTC - Low Timeframe

Following on from our midweek market breakdown, we were awaiting to see a manipulation of the 1H SSL to potentially fuel bullish movement into the $17,300 region.

BTC-MICRO--5-

Now we have achieved this:

  1. Mitigating a bullish order block in discount
  2. Reached discounted prices
  3. Closed the 1H fair value gap
  4. Taken 1H SSL

Alternatively, price could encounter resistance at the $17,000 price level, pushing price down into the $16,500 price level before resuming bullish movement, or the low could fail, resulting in overall deeper bearish prices in the wider range.

If the bullish trend is to take hold, we would want to see:

  1. 1H fair value gaps closed as areas of rebalancing
  2. Premium prices reached
  3. Mitigation of bearish order blocks in premium.

BTC - Macro View

BTC-USD continues its low-volume accumulative price action as we enter the holiday period.

BTC-MACRO--5-

Price has continued to range sideways, taking external range liquidity (1D BSL) and internal range liquidity (4H SSL) which has pushed price to the equilibrium of the current daily range.

From an HTF perspective, we have 3 potential scenarios:

  1. Price has found support finding value at discounted prices so we see a bullish move up into $18,000 coinciding with the 1D 50 EMA or longer term into the $19,000 region.

  2. Price has not found support yet and seeks more discounted prices, thus a bearish move to the $16,000 region.

  3. Price has manipulated the 1D BSL and will be using it to form new lows below the 1D SSL at $15,500.

Altcoins on the Move
Ethereum (ETH) volatility leveled off slightly along with most cryptocurrencies and appeared largely unaffected by Paxful's announcement that the platform would remove ETH in a nod to Bitcoin primacy.

  • 2 dormant whale wallets moved 22,983 ETH (currently valued at about $27 million) into fresh wallets. In addition, Three Arrows Capital (3AC) moved 2000 ETH (~$2.38 million) out of Binance, leaving over 6500 ETH on the exchange.
  • FIL and CHZ were both down over 20% and TWT (Binance’s Trust Wallet token) fell sharply for the second week in a row and is struggling to find support at the $1.50 mark.
  • Polygon (MATIC) price has been spotted in a double top chart pattern, signaling that buying pressure may be nearing a reversal.

Ethereum Macro

Similarly to BTC, we've seen ETH continue its accumulative corrective price action as it takes liquidity from both bullish and bearish extremes.

ETH-MACRO--4-

We could see price targets of $1300 and $1400 now that the price has reached equilibrium within the current short-term range.

Alternatively, prices could continue to decline at deeper discounts to the $1100 price level before finding support at the extreme of the range.

If price does not find support, we will most likely have to raid all of the liquidity positioned below the lows of $1070 and $996 before finding support again.

Newsworthy:

  • BlockFi filed a motion requesting authority from the US Bankruptcy Court to allow their customers to withdraw crypto held in BlockFi.
  • Derivatives giant CME Group and CF Benchmarks launched new DeFi rates and indices for AAVE, CRV, and SNX. Data from the indices could offer a higher level of accuracy in building structured projects and crypto portfolios.
  • Fireblocks crypto custody platform was the first company in the industry to receive a CCSS Level 3 Qualified Service Provider certification. A C4-certified and independent CCSS auditor completed an audit of all of Fireblock’s systems and functions.
  • In NFTs: Yuga Labs announced a new CEO with gaming expertise to shift Bored Apes into immersive technologies, Trump NFTs were down 70% in their first week, and the Starbucks Odyssey NFT loyalty program has some industry experts thinking that more big brands will enter the crypto loyalty space.

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Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.